Explanatory Memorandum
(Circulated by authority of the Minister for Community Services, the Hon Larry Anthony MP)Schedule 7 - Minimum rate of child support
Summary of proposed changes
This measure will set up a regulation making power to allow certain amounts to be excluded from income so that the current $260 minimum child support liability will not apply.
Explanation of the changes
Until amendments that took effect in 1999, it was possible for a child support assessment to result in a liability of nil. In 1999, a general $260 pa ($5 pw) minimum liability was imposed, regardless of income. (However, a liability of less than $260 remains possible in certain shared or divided care assessments.)
The only exception provided is if the Registrar is satisfied that a persons income for the first 12 months of the child support period will be less than $260. The narrow scope of this exception has been a problem. For example, disability support pensioners who are long term nursing home residents, have the majority of their pensions taken directly by the nursing home for costs associated with the care.
The amendments made by the two items in this Schedule allow regulations to be made to exempt certain amounts from the meaning of income so that the $260 minimum liability will not apply.
Regulations will be made in due course to deal with cases such as that mentioned above.
This measure commences on Royal Assent.